(Reference Translation)

May 10, 2019

Summary of Consolidated Financial Results
for the Fiscal Year Ended March 31, 2019
<under Japanese GAAP>
Company name:
Listing:
Securities code:
URL:
Representative:
Inquiries:

MIKUNI CORPORATIONFirst Section of Tokyo Stock Exchange7247
http://www.mikuni.co.jp/
Hisataka Ikuta, President, CEO & COO
Hisashi Shibata, General Manager Treasury & Accounting Dept. Corporate
Division
TEL: +81-3-6895-0038

Scheduled date of Ordinary General Meeting of Shareholders:
Scheduled date to commence dividend payments:
Scheduled date to file the Annual Securities Report:
Preparation of supplementary material on financial results:
Holding of financial results presentation meeting:June 26, 2019
June 27, 2019
June 26, 2019
Yes
Yes (for institutional investors and analysts)(Millions of yen with fractional amounts discarded, unless otherwise noted)

1.

Consolidated financial results for the fiscal year ended March 31, 2019(from April 1, 2018 to March 31, 2019)(1) Consolidated operating results(Percentages indicate year-on-year changes. Figures in parentheses are negative figures.)
Net sales

Operating income

Net income attributable toowners of parent

Ordinary income

Fiscal year ended

Millions of yen%

Millions of yen%

Millions of yen

March 31, 2019

121,803

17.4

4,403

6.9

4,381

7.7

2,262

(11.2)March 31, 2018

103,772

9.5

4,117

19.2

4,070

17.3

2,547

(5.1)

Note: Comprehensive income

Fiscal year ended March 31, 2019:
Fiscal year ended March 31, 2018:
Basic earnings
per share

Diluted earnings
per share% Millions of yen%

337 million yen [(90.7) %]3,616 million yen [21.9 %]Return on equity

yen

Ratio of ordinary
Ratio of operating
income to total
income to net sales
assetsFiscal year ended

yen

%

%

%

March 31, 2019

67.26

–

7.0

4.7

3.6

March 31, 2018

75.77

–

8.3

4.5

4.0

Reference: Share of income (loss) of entities accounted for using equity method
Fiscal year ended March 31, 2019: (35) million yen
Fiscal year ended March 31, 2018: 24 million yen

(2) Consolidated financial position
Total assets
As of

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

yen

March 31, 2019

96,76832,95533.1

952.60March 31, 2018

89,74433,19536.0

959.95

Reference:

EquityAs of March 31, 2019:
As of March 31, 2018:

32,036 million yen
32,285 million yen(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at end of
periodFiscal year ended

Millions of yen

Millions of yen

Millions of yen

Millions of yen

March 31, 2019

5,121

(6,607)

2,770

6,046

March 31, 2018

9,423

(3,812)(5,624)

4,979

2.

Dividends
Annual dividends

Fiscal year ended
March 31, 2018
Fiscal year ended
March 31, 2019
Fiscal year ending
March 31, 2020
(Forecast)3.

Total dividends(Total)Dividend
payout ratio(Consolidated)

Ratio ofdividends to
net assets(Consolidated)

yen Millions of yen

%

%

507

19.8

1.6

507

22.3

1.6

First
quarterend

Secondquarterend

Third
quarterend

Fiscalyearend

yen

yen

yen

yen

–

5.00

–

10.00

15.00

–

5.00

–

10.00

15.00

–

5.00

–

10.00

15.00

Total

24.0

Consolidated earnings forecasts for the fiscal year ending March 31, 2020
(from April 1, 2019 to March 31, 2020)(Percentages indicate year-on-year changes. Figures in parentheses are negative figures.)
Net sales

Six months ending
September 30, 2019
Fiscal year ending
March 31, 2020

Operating income

Ordinary income

Net income
attributable toowners of parent

Millions ofyenMillions ofyenMillions ofyenMillions ofyen%

55,000(7.3)

1,200 (38.6)

1,000 (41.0)

116,000(4.8)

3,800 (13.7)

3,700 (15.6)%%

Basic earnings
per share%yen

300 (71.3)

8.92

2,100

(7.2)

62.44

* Notes(1) Changes in significant subsidiaries during the fiscal year under review (changes in specified subsidiaries
resulting in changes in the scope of consolidation): None
(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial
statements after error corrections
a. Changes in accounting policies due to revisions to accounting standards and other regulations: Noneb. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: None
d. Restatement of prior period financial statements after error corrections: None
(3) Number of issued shares (common shares)
a. Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2019
As of March 31, 2018b.

Number of treasury shares at the end of the period
As of March 31, 2019
As of March 31, 2018c.

34,049,423 shares
34,049,423 shares

418,249 shares
417,473 shares

Average number of shares during the period
Fiscal year ended March 31, 2019
Fiscal year ended March 31, 2018

33,631,565 shares
33,629,260 shares(Note) The Company’s shares held by the “Management Board Incentive Plan (BIP) Trust” are included in the number oftreasury shares at the end of the period (233,500 shares as of March 31, 2019 and 233,500 shares as of March 31,2018).
In addition, the Company’s shares held by the “Management Board Incentive Plan (BIP) Trust” are included intreasury shares, which are deducted in calculating the average number of shares during the period. (233,500 sharesin the fiscal year ended March 31, 2019 and 236,715 shares in the fiscal year ended March 31, 2018)

(Reference)

Summary of non-consolidated financial results

Non-consolidated financial results for the fiscal year ended March 31, 2019(from April 1, 2018 to March 31, 2019)(1) Non-consolidated operating results(Percentages indicate year-on-year changes)
Net sales

Operating income

Ordinary income

Net income

Fiscal year ended

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

March 31, 201986,24825.1

244(19.0)

1,335(33.3)

670(62.1)March 31, 2018

68,9334.3

301(17.3)

2,002

4.0

1,772

(16.9)

Basic earnings
per share

Diluted earnings
per share

Fiscal year ended

yen

yen

March 31, 2019

19.95

–

March 31, 2018

52.70

–

(2) Non-consolidated financial position
Total assets
As of

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

yen

March 31, 201967,83722,44933.1

667.51March 31, 2018

64,522

23,13135.8

687.77

Reference:

EquityAs of March 31, 2019:
As of March 31, 2018:

22,449 million yen
23,131 million yen* Financial results reports are exempt from audit conducted by certified public accountants or an audit
corporation.
* Disclaimer regarding forward-looking statements
The forward-looking statements, including earnings forecasts, contained in these materials are based on
information currently available to the Company at the time of the release of these materials. Actual results
may differ from the forecasts due to various factors.

[Attached Material]
Index

1. Overview of Operating Results and Others ............................................................................................ 2(1) Overview of operating results for the fiscal year ............................................................................. 2(2) Overview of financial position for the fiscal year............................................................................ 4(3) Basic policy for distributing incomes, and dividends for the fiscal year under review andnext fiscal year ................................................................................................................................. 5
2. Status of the Corporate Group ................................................................................................................ 6
3. Basic concept regarding selection of accounting standards ................................................................... 6
4. Consolidated financial statements and significant notes thereto ............................................................ 7(1) Consolidated balance sheet .............................................................................................................. 7(2) Consolidated statement of income and consolidated statement of comprehensive income ............. 9(3) Consolidated statement of changes in equity ................................................................................. 11(4) Consolidated statement of cash flows ............................................................................................ 13(5) Notes to consolidated financial statements .................................................................................... 15(Notes on premise of going concern) ............................................................................................. 15(Significant matters forming the basis of preparing the consolidated financial statements).......... 15(Segment information) ................................................................................................................... 16(Per share information) .................................................................................................................. 18(Significant subsequent events) ..................................................................................................... 18

-1-

1.

Overview of Operating Results and Others(1) Overview of operating results for the fiscal year
In the current fiscal year (from April 1, 2018 to March 31, 2019), as for the Japanese economy, theemployment situation improved and capital investment increased, so the economic recovery trend
continued. As for overseas, the economy slowed moderately in China partly due to a sense of uncertainty
regarding trade policies.
In this business environment, partly due to the strong performance of the Automobile-related Products
Business and the Aircraft Component Import and Sales Business, the Group’s net sales amounted to
121,803 million yen (up 17.4% year-on-year). While the profit ratio of the Automobile-related Products
Business improved and sales increased significantly in the Aircraft Component Import and Sales
Business, partly due to a drop in sales in the Household Appliances Device Products Business, operating
income amounted to 4,403 million yen (up 6.9% year-on-year). As a result, ordinary income amounted to
4,381 million yen (up 7.7% year-on-year). Net income attributable to owners of parent stood at 2,262
million yen (down 11.2% year-on-year) partly because of the recording of litigation expenses inextraordinary losses. In the United States, a class-action lawsuit was brought against Mikuni and the US
subsidiary of Mikuni in relation to the sale of some automobile-related products. Although Mikuni andthe US subsidiary of Mikuni did not accept responsibility regarding compensation for damages, etc., anagreement in principle was reached, comprehensively taking into consideration the higher expense of
prolonged litigation and the effects of this on business, etc. The settlement in question will be formallydetermined after the process of court approval has been completed.
Operating results by segment are as follows:(i)<Automobile-related Products Business>
Sales in this business, which centers on the manufacture and sale of fuel supply systems forautomobiles, motorcycles, and general purpose engines and engine-related functional components,
increased compared with the previous fiscal year. As for products for automobiles, while theeconomic slowdown in China had an effect on performance, production continued to be robust inJapan, ASEAN, and India, so sales rose. In regard to products for motorcycles (including products
for outboard motors), sales increased due to factors such as robust performance in ASEAN and
India and the expansion of demand for products for outboard motors. As a result, net sales in thisbusiness amounted to 72,137 million yen (up 6.9% year-on-year), and operating income was 4,160
million yen (up 14.3% year-on-year).

(ii) <Household Appliances Device Products Business>
Sales in this business, which centers on the manufacture and sale of control systems for gas
appliances and water appliances, decreased from the previous fiscal year. Product strategies wererevised due to factors such as delays in the promotion of environmental policies by the Chinese
government, and the intensification of competition. As a result, net sales in this business amounted
to 6,624 million yen (down 16.8% year-on-year), and there was an operating loss of 348 million
yen (246 million yen operating income for the previous year).
(iii) <Aircraft Component Import and Sales Business>
Sales of aircraft components increased from the previous fiscal year. Demand for imported
materials, etc. increased significantly accompanying a shift to the mass production of newly
developed commercial aircraft. As a result, net sales in this business amounted to 35,632 million
yen (up 70.1% year-on-year), and operating income was 769 million yen (193 million yen for theprevious fiscal year).
(iv) <Other Businesses>
Sales in this segment, which handles the sale of turf-maintenance equipment, etc. and the
manufacture and sale of vehicle heaters, welfare and care devices and other products, remained at
the previous year’s level. As for turf-maintenance equipment, etc., in spite of natural disasters
having some effects on performance, sales were on par with the previous year’s level partly due tothe cultivation of new customers. Sales of vehicle heaters fell partly due to a saturation in demandfor products for tourist buses, etc. As for welfare and care devices, etc., the customer base was-2-

expanded and product lines were enhanced, so sales increased. As a result, net sales in this businessamounted to 7,409 million yen (up 0.2% year-on-year). Meanwhile, partly because of a change inthe product composition of turf-maintenance equipment, etc., Other Businesses recorded an
operating loss of 177 million yen (38 million yen operating income for the previous year).
[Comparison table of Operating results by segment]
Fiscal year ended
March 31, 2018
Operating
Net sales
incomeFiscal year ended
March 31, 2019
Operating
Net sales
income(Millions of yen)
Change inoperating income

Change innet sales
AmountRatio

Amount

Ratio

Automobile-related
67,4603,640
72,137
4,160
4,676
6.9%
519
14.3%
Products BusinessHousehold Appliances
7,966
246
6,624
(348)
(1,342)(16.8)%(594)－
Device Products BusinessAircraft Component Import
20,948
193
35,632769
14,68470.1%
576
298.4%and Sales Business
Other Businesses
7,397
38
7,409
(177)
12
0.2%
(215)
－
Total
103,772
4,117
121,803
4,403
18,031
17.4%
285
6.9%
Reference: exchange rate
1 USD = 112.16 yen
1 USD = 110.44 yen－－(Notes) 1. The figures inside parentheses in the column presenting operating income indicate the amount of operating loss.
2. Amounts less than one million yen are discarded.
3. “–” indicates a negative change in the current fiscal year or the previous fiscal year or both.

[Reference] Performance trends for each quarter from the fiscal year ended March 31, 2017 to fiscal year ended
March 31, 2019
Fiscal year ended
March 31, 2017
First
quarter

Secondquarter

Automobile- Net sales
relatedOperating
Products
incomeBusiness
Household Net sales
Appliances
DeviceOperatingincomeProducts
Business
Aircraft
Net sales
Component
Import and Operating
incomeSales
Business

13,945 13,829

Net sales
Other
Businesses Operating

Total

incomeNet sales
Operatingincome(Millions of yen)
Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2018

Third quarter

FourthquarterFirst quarter

SecondquarterThird quarter

FourthquarterFirst quarter

SecondquarterThird quarter

Fourthquarter

14,79816,43815,711

15,822

17,42818,497

16,954

17,645

18,846

18,690

756

321

476

908

918

575

1,147

999

1,065

631

1,365

1,097

1,557

1,777

1,882

1,995

1,701

1,974

2,187

2,103

1,663

1,817

1,685

1,458

(39)

152

79

219

15

94

102

34

(20)

(102)

(63)

(161)

5,681

5,345

4,928

5,317

5,306

5,062

5,314

5,264

8,697

8,980

9,383

8,570

0

(52)

225

108

56

33

88

14

219

299

206

44

1,709 1,773
33
102
22,893 22,727
751
523

1,718
69
23,328
850

2,088
90
25,839
1,328

1,906
(11)
24,625
978

1,764
(21)
24,624
682

1,574
(49)
26,505
1,288

2,151
120
28,017
1,168

1,731
(65)
29,046
1,197

1,817
(73)
30,261
755

1,790
(38)
31,706
1,469

2,070
0
30,789980(Notes) 1. The figures inside parentheses in the row presenting operating income indicate the amount of operating loss.
2. Amounts less than one million yen are discarded.

Future outlook
The business environment surrounding the Group is exposed to the influence of not only macroeconomic andpolitical trends in Japan and overseas, but also changes in regulatory structures such as environmental
regulations. Responding to these changes in the business environment, the Group aims to be a sustainable andhighly profitable company underpinned by our manufacturing expertise.
Although there is a risk of market fluctuations resulting from trade policies and so on, the Group is expecting
the global economy to continue on a moderate recovery. Accordingly, we will continue our research anddevelopment with a close eye on the increasingly stricter environmental regulations and strategic investment
while striving to make improvements in production efficiency. Based on the current information, ourconsolidated earnings forecasts for the next fiscal year (ending March 31, 2020) are as follows:-3-

Consolidated earnings forecasts for the fiscal year ending March 31, 2020
(from April 1, 2019 to March 31, 2020)(Millions of yen)
Net income
Basic earnings
Operating
Net sales
Ordinary income attributable toper share
incomeowners of parent(Yen)
Current Forecast
116,000
3,800
3,700
2,100
62.44
Results for the previous fiscal year
121,803
4,403
4,381
2,262
67.26
(Note) The forward-looking statements, including earnings forecasts, contained in these materials are based on information
currently available to the Company and certain assumptions deemed reasonable. Actual results may differ significantly
from the forecasts due to various factors.

(2) Overview of financial position for the fiscal year
a. Assets, liabilities and net assets(Assets)
Total assets at the end of the fiscal year under review amounted to 96,768 million yen, an increase of
7,024 million yen from the previous fiscal year-end.
Current assets amounted to 46,104 million yen, an increase of 5,694 million yen from the previous fiscal
year-end. This was mainly due to an increase in inventories of 3,134 million yen and an increase in cash
and deposits of 985 million yen.
Non-current assets amounted to 50,664 million yen, an increase of 1,330 million yen from the previous
fiscal year-end. This was mainly due to the fact that although investment securities decreased by 1,060
million yen, there was an increase of 2,204 million yen in property, plant and equipment resulting from
capital investment.
(Liabilities)
Total liabilities at the end of the fiscal year under review amounted to 63,813 million yen, an increase of
7,264 million yen from the previous fiscal year-end.
Current liabilities amounted to 35,572 million yen, an increase of 299 million yen from the previous fiscal
year-end. This was mainly due to the fact that although short-term loans payable decreased by 3,345
million yen, “notes and accounts payable – trade” increased by 1,677 million yen and “accounts payable –other” increased by 1,415 million yen.
Non-current liabilities amounted to 28,240 million yen, an increase of 6,964 million yen from theprevious fiscal year-end. This was mainly due to an increase of 6,714 million yen in long-term loans
payable.
(Net assets)
Net assets amounted to 32,955 million yen, a decrease of 239 million yen from the previous fiscal yearend. This was mainly due to the fact that although net income attributable to owners of parent of 2,262
million yen was recorded, foreign currency translation adjustment decreased by 1,133 million yen andvaluation difference on available-for-sale securities decreased by 866 million yen.
b. Cash flows
Cash and cash equivalents (hereinafter, “cash”) for the fiscal year under review increased by 1,066 million
yen from the previous fiscal year-end, to 6,046 million yen.
The respective cash flow positions for the fiscal year under review are as follows:(Cash flows from operating activities)
Net cash provided by operating activities in the fiscal year under review was 5,121 million yen (9,423
million yen was provided in the previous fiscal year). This was mainly due to the fact that positive factors
based on income before income taxes of 3,852 million yen and based on depreciation of 4,338 million yen,exceeded negative factors based on an increase in inventories of 3,325 million yen.
(Cash flows from investing activities)
Net cash used in investing activities in the fiscal year under review amounted to 6,607 million yen (3,812
million yen was used in the previous fiscal year). This was mainly due to 7,116 million yen in thepurchase of fixed assets.
(Cash flows from financing activities)
Net cash used in financing activities in the fiscal year under review totaled 2,770 million yen (5,624
million yen was provided in the previous fiscal year). This was mainly due to proceeds from a 3,711
million yen net increase in loans payable.
-4-(3) Basic policy for distributing incomes, and dividends for the fiscal year under review and next fiscal
year
The Company, taking into consideration the operating results of the fiscal year and future businessdevelopment, has a basic policy regarding dividends from surplus, etc. of carrying out result-based
distributions in a stable manner based on a medium- to long-term perspective.
Stable dividends and future business development, etc. were comprehensively examined, and as a result,a plan is in place to submit a proposal at the 97th Ordinary General Meeting of Shareholders, which isscheduled to be held on June 26, 2019, to a regular dividend of 10 yen per share of common shares of theCompany.
Regarding projected dividends for the next fiscal year (ending March 31, 2020), the Company expects,
based on earnings forecasts and current forecasts of the financial position, to pay a regular interim
dividend of 5 yen per share of common shares, and a regular year-end dividend of 10 yen per share,
giving projected annual dividends of 15 yen per share.
(Note)

The forecasts for the next fiscal year contained in these materials are forward-looking statements including risks
and uncertainties. Therefore, the actual results may differ from the forecasts stated herein due to changes ofvarious factors.

-5-

2.

Status of the Corporate GroupThe Group (the Company and its affiliates) consists of the Company (MIKUNI CORPORATION), 21
subsidiaries, and four associates. The Group is engaged in manufacturing and sales of fuel injectionrelated products, carburetors, heaters, pumps, gas control devices, etc., the import and sales of aircraftcomponents, and real estate leasing and other services.
Business organization chart
Reportable segments are the Automobile-related Products Business, the Household Appliances Device
Products Business, and the Aircraft Component Import and Sales Business. The business organization
chart of the Group as of March 31, 2019 (showing the Company and its main affiliates) is shown below.

Overseas

Domestic
Manufacturing and sales company(Entity accounted for using
equity method)
Mikuni Aim Corporation
Pierburg Mikuni Pump
Technology Corporation(Entity accounted for using equity
method)(Consolidated subsidiaries)
Mikuni American Corporation
Mikuni Europe GmbH
Mikuni Taiwan Corporation(Consolidated subsidiary)Corbin Properties Incorporated

Finished goods/
merchandise

3.

External customers

Mikuni R. K. Corporation
Pierburg Mikuni Pump Technology(Shanghai) Corporation

Services company
Other Businesses

Other Businesses(Consolidated subsidiary)
Mikuni Life & Auto Co.,Ltd.

Automobile-related Products Business

Manufacturing and sales company

Sales Business(Consolidated subsidiary)
Asahi Air Supply Inc.

Mikuni (Thailand) Co., Ltd.
Mikuni (Shanghai) Co., Ltd.
Tianjin Mikuni Co., Ltd.
Mikuni (Chengdu) Machinery &Electronics Co., Ltd.
Mikuni (Zhejiang) Co., Ltd.
Mikuni Mexicana S.A.de C.V.
PT. Mikuni Indonesia
Mikuni India Private Limited

Sales companies

MIKUNICORPORATION(the Company)

Household Appliances Device
Products Business, Aircraft Component Import andAircraft Component
Import and Sales Business

External customers

Sales company(Consolidated subsidiaries)

Automobile-related Products BusinessHousehold Appliances Device
Products Business

Automobile-related
Products Business(Consolidated subsidiary)
Mikuni Partec Corporation

Automobile-related Products Business, Household Appliances Device Products Business and Aircraft Component Import andSales Business

Manufacturing and sales companies

Manufacturing and sales companies

Components

Services

Basic concept regarding selection of accounting standards
The Group has prepared the consolidated financial statements in accordance with Japanese GAAP, andthere is no immediate plan to change its accounting standards. Concerning the policy for the applicationof IFRS, the Group will respond to this issue appropriately while giving consideration to various
circumstances in Japan and overseas.

-6-

4.

Consolidated financial statements and significant notes thereto(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2018
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-7-

As of March 31, 2019

5,060
19,742

6,046
18,924

1,786

1,731

6,105
4,137
1,593
2,072
(87)
40,410

9,425
3,855
1,689
4,496
(65)
46,104

31,779(21,587)
10,191
46,247(35,394)
10,853
18,273(16,175)
2,097
11,9182,486
37,54832,112(22,156)
9,956
47,758(35,891)
11,866
19,074(16,757)
2,316
11,8803,732
39,752

142
858
1,001

77
898
976

7,328
27
1,254
2,336
(162)
10,78449,33489,744

6,268
33
1,432
2,377
(176)
9,936
50,66496,768(Millions of yen)
As of March 31, 2018

As of March 31, 201913,434
8,993
4,835
286
1,998
445
2,792
1,619
190
676
35,272

15,111
5,647
5,087
309
3,414
567
2,666
1,669
278
817
35,572

12,576
303
1,081
2,258

19,291
496
1,293
2,249

44

60

3,523
1,486
21,27656,5483,472
1,377
28,24063,8132,215
1,937
18,617(181)
22,5882,215
1,923
20,371(181)
24,328

3,419

2,553

(14)
5,273
1,445
(427)
9,696
910
33,19589,744

(3)
5,282
311
(436)
7,708
918
32,95596,768

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Accounts payable - other
Income taxes payable
Accrued expenses
Provision for bonuses
Provision for product warranties
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Provision for management board incentive plantrust
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-8-(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income(Millions of yen)
Fiscal year ended
March 31, 2018
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of income of entities accounted for using
equity method
Foreign exchange gains
Rent income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodRent expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on sales of shares of subsidiaries andassociates
Gain on liquidation of subsidiaries and associates
Insurance income
Other
Total extraordinary income
Extraordinary losses
Loss on sales and retirement of non-current assets
Impairment loss
Loss on fire
Litigation expenses
Other
Total extraordinary losses
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of parent-9-

Fiscal year ended
March 31, 2019

103,772
87,887
15,884
11,766
4,117

121,803
105,478
16,324
11,921
4,403

60
212

100
174

24

－

－
209
160
667

2
209
180
666

353

371

－

35

95
133
132
715
4,070

145
－
136
688
4,381

3
239

8
0

41

131

66
56
－
407

－
－
0
141

49
16
55
－
2
124
4,353
1,139
568
1,708
2,644
96
2,547

69
24
－
544
30
670
3,852
1,118
375
1,493
2,358
96
2,262

Consolidated statement of comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2018
Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests- 10 -

Fiscal year ended
March 31, 2019

2,644

2,358

606
(15)
－
270
62

(866)
11
9
(1,105)
(9)

48

(61)

972
3,616

(2,020)
337

3,492

274

124

63

(3) Consolidated statement of changes in equity
Fiscal year ended March 31, 2018
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period
Changes of items during
periodCapital surplus

2,215

Retained earnings

Treasury shares

Total shareholders'equity16,382(186)

20,348

1,937

Dividends of surplus

(406)

(406)

Net income attributableto owners of parent

2,547

2,547

Purchase of treasury
shares
Disposal of treasury
sharesChange in ownershipinterest of parent due totransactions with noncontrolling interests
Change of scope ofequity method
Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
period

(0)

(0)

5

5
－

93

93
－

－

－

2,234

5

2,240

2,215

1,937

18,617(181)

22,588

Accumulated other comprehensive income
Valuation
Deferred gains Revaluationdifference onor losses onreserve foravailable-forhedges
landsale securities
Balance at beginningof current period
Changes of items
during period

2,813

1

5,273

Foreigncurrencytranslation
adjustment
1,261

Remeasure- Total accumulated
ments of defined other comprehenbenefit plans
sive income
(489)

8,858

Noncontrollinginterests

Total net
assets850

30,058(406)

Dividends of surplus
Net income
attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChange inownership interest ofparent due totransactions with
non-controllinginterests
Change of scope ofequity method
Net changes of items
other thanshareholders' equity
Total changes of items
during period
Balance at end ofcurrent period

2,547
(0)
5

－

93
606

(15)

－

184

62

837

59

897

606

(15)

－

184

62

837

59

3,137

3,419

(14)

5,273

1,445

(427)

9,696

910

33,195- 11 -

Fiscal year ended March 31, 2019
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period
Changes of items during
periodCapital surplus

2,215

Retained earnings

Treasury shares

Total shareholders'equity18,617(181)

22,588

1,937

Dividends of surplus

(507)

(507)

Net income attributableto owners of parent

2,262

2,262

Purchase of treasury
shares
Disposal of treasury
sharesChange in ownershipinterest of parent due totransactions with noncontrolling interests
Change of scope ofequity method
Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
period

(0)

(0)
－

(13)

(13)
－
－

－

(13)

1,754

(0)

1,739

2,215

1,923

20,371(181)

24,328

Accumulated other comprehensive income

Balance at beginningof current period
Changes of items
during period
Dividends ofsurplus
Net income
attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChange inownership interestof parent due totransactions with
non-controllinginterests
Change of scope ofequity method
Net changes of
items other thanshareholders' equity
Total changes of items
during period
Balance at end ofcurrent period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

3,419

(14)

5,273

1,445

NonRemeasureTotal
controllingments ofaccumulated
interests
defined benefit other comprehenplans
sive income
(427)

9,696

910

Total net
assets33,195

(507)
2,262
(0)
－

(13)

－
(866)

11

9

(1,133)(9)(1,988)

8(1,979)

(866)

11

9

(1,133)(9)(1,988)

8

(239)

2,553

(3)

5,282

311

(436)

7,708

918

32,955- 12 -

(4) Consolidated statement of cash flows(Millions of yen)
Fiscal year ended
March 31, 2018
Cash flows from operating activities
Income before income taxes
Depreciation
Amortization of goodwill
Impairment loss
Litigation expenses
Interest and dividend income
Interest expenses
Loss (gain) on sales and retirement of non-current
assetsShare of loss (income) of entities accounted forusing equity method
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for productwarranties
Increase (decrease) in provision for bonuses
Increase (decrease) in allowance for doubtful
accounts
Decrease (increase) in notes and accounts
receivable - trade
Decrease (increase) in inventories
Decrease (increase) in accounts receivable - other
Increase (decrease) in notes and accounts payable trade
Increase (decrease) in accounts payable - other
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Decrease (increase) in time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries and associates
Proceeds from sales of shares of subsidiaries andassociates
Proceeds from liquidation of subsidiaries andassociates
Payments of loans receivableCollection of loans receivable
Other, net
Net cash provided by (used in) investing activities- 13 -

Fiscal year ended
March 31, 2019

4,353
4,387
65
16
－
(272)
353

3,852
4,338
65
24
544
(275)
371

45

61

(24)

35

25

(38)

(17)

94

228

54

(24)

(4)

(1,412)

278

388
363

(3,325)
330

1,502

2,086

(296)
1,067
10,749226(342)(1,209)9,423

401(2,595)
6,302
277
(352)
(1,105)
5,121

1,017
(5,258)－(6,830)

291

490

(257)
(7)
346
(10)

(285)
(207)
2
(1)

57

158

80

－

(50)
14
(37)
(3,812)(25)
1477(6,607)

(Millions of yen)
Fiscal year ended
March 31, 2018
Cash flows from financing activities
Increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Purchase of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 14 -

Fiscal year ended
March 31, 2019

(4,732)
7,248(7,203)
(0)
(405)
(54)
(476)
(5,624)(3,224)
11,423(4,487)
(0)
(506)
(66)
(366)
2,770

47

(218)

34
4,945
4,979

1,066
4,979
6,046

(5) Notes to consolidated financial statements(Notes on premise of going concern)
Not applicable.
(Significant matters forming the basis of preparing the consolidated financial statements)
Disclosure omitted because there have been no significant changes from the items stated in the recent
Annual Securities Report (filed on June 27, 2018), except for the change stated under “change inpresentation” below.
(Change in presentation)
Changes in Accordance with Application of “Partial Amendments to Accounting Standard for Tax EffectAccounting”
The Group has applied the “Partial Amendments to Accounting Standard for Tax Effect Accounting”(ASBJ Statement No. 28, February 16, 2018) effective from the beginning of the fiscal year ending
March 31, 2019. Accordingly, deferred tax assets (if any) were presented under “Investments and otherassets” and deferred tax liabilities (if any) were presented under “Non-current liabilities.”
As a result, on the consolidated balance sheet for the fiscal year ended March 31, 2018, “deferred tax
assets” under “current assets” decreased by 881 million yen, and “deferred tax assets” under“investments and other assets” increased by 475 million yen. Furthermore, “deferred tax liabilities”
under “current liabilities” decreased by 0 million yen, and “deferred tax liabilities” under “non-current
liabilities” decreased by 406 million yen.
Deferred tax liabilities are offset by deferred tax assets under the same tax authority, so total assets
decreased by 406 million yen relative to before the above-mentioned change.

- 15 -

(Segment information)[Segment information]
1. Outline of reportable segments
The reportable segments of the Group are components of the Group that have separate financial
information available and are periodically examined to enable the Board of Directors to makedecisions on the allocation of management resources and evaluate the results of businessperformance.
The Company establishes comprehensive domestic and overseas strategies for each product andservice, and undertakes business activities in cooperation with group companies.
The Group accordingly consists of segments by product and service, with three reportable segments:
Automobile Products-related Business, Household Appliances Device Products Business, andAircraft Component Import and Sales Business.
The Automobile Products-related Business mainly manufactures and sells fuel supply systems forautomobiles, motorcycles, and general purpose engines and engine-related functional components.
The Household Appliances Device Products Business mainly manufactures and sells control systems
for gas appliances and water appliances. The Aircraft Component Import and Sales Business mainly
imports and sells aircraft components.

2. Calculation method for the amounts of net sales, income/loss, assets and other items by reportablesegment
The accounting method for reportable segments is generally the same as the method described in“Significant matters forming the basis of preparing the consolidated financial statements.”
Segment profit (loss) of reportable segments is provided on an operating income (loss) basis.

- 16 -

3. Information regarding the amounts of net sales, income/loss, assets and other items by reportablesegment
Fiscal year ended March 31, 2018 (April 1, 2017 to March 31, 2018)(Millions of yen)
Reportable segment
HouseholdAircraft
Automobile
Appliances Component
ProductsDevice
Import andrelatedProducts
Sales

Total

Other
Businesses(Note)

Total

Amounts
reported in the
Adjustments consolidated
financialstatements

Net sales
To external customers
67,460
7,966
20,94896,375
7,397 103,772–
103,772
Inter-segment sales or
–
–
–
–
–
–
–
–
transfers
Total
67,460
7,966
20,94896,375
7,397 103,772–
103,772
Segment profit (loss)
3,640
246
193
4,079
38
4,117
–
4,117
Segment assets
68,7806,676
9,064
84,521
5,223
89,744–89,744
Other items
Depreciation
3,935
282
77
4,296
91
4,387
–
4,387
Amortization of goodwill and
–
–
37
37
27
65
–
65
negative goodwill
Investments in entities
accounted for using equity
934
324
–
1,259
–
1,259
–
1,259
methodIncrease in property, plantand equipment and intangible
5,162
460
31
5,654
200
5,855
–
5,855
assets(Note) The “Other Businesses” category refers to a business segment not included in reportable segments including suchbusinesses as sales of turf-maintenance equipment, etc. and manufacturing and sales of vehicle heaters and welfare andcare devices, etc.
Fiscal year ended March 31, 2019 (April 1, 2018 to March 31, 2019)(Millions of yen)
Reportable segment
HouseholdAircraft
Automobile
Appliances Component
ProductsDevice
Import andrelatedProducts
Sales

Total

Other
Businesses(Note)

Total

Amounts
reported in the
Adjustments consolidated
financialstatements

Net sales
To external customers
72,137
6,624
35,632 114,394
7,409 121,803–
121,803
Inter-segment sales or
–
–
–
–
–
–
–
–
transfers
Total
72,137
6,624
35,632 114,394
7,409 121,803–
121,803
Segment profit (loss)
4,160
(348)
769
4,581
(177)
4,403
–
4,403
Segment assets
74,057
6,928
10,56791,553
5,215
96,768–96,768Other items
Depreciation
3,827
369
56
4,253
85
4,338
–
4,338
Amortization of goodwill and
–
–
37
37
27
65
–
65
negative goodwill
Investments in entities
accounted for using equity
850
311
–
1,162
–
1,162
–
1,162
methodIncrease in property, plantand equipment and intangible
6,587
523
42
7,153
257
7,411
–
7,411
assets(Note) The “Other Businesses” category refers to a business segment not included in reportable segments including suchbusinesses as sales of turf-maintenance equipment, etc. and manufacturing and sales of vehicle heaters and welfare andcare devices, etc.

- 17 -

(Per share information)
Fiscal year ended March 31, 2018(from April 1, 2017
to March 31, 2018)

Fiscal year ended March 31, 2019(from April 1, 2018
to March 31, 2019)

Net assets per share

959.95 yen

952.60 yen

Basic earnings per share

75.77 yen

67.26 yen

Item

(Notes) 1.
2.

Diluted earnings per share is not presented since no potential shares exist.
The shares of the Company that remain in trust and are recorded as treasury shares in shareholders’ equity areincluded in treasury shares that are excluded from the recording of the average number of shares during theperiod in calculating the amount of basic earnings per share, and are included in the number of treasury
shares that are excluded from the total number of issued shares at the end of the period in calculating net
assets per share.
Number of treasury shares at end of period deducted in calculating net assets per share
Fiscal year ended March 31, 2018
233,500 sharesFiscal year ended March 31, 2019
233,500 shares
Average number of treasury shares during period deducted in calculating the basic earnings per share
Fiscal year ended March 31, 2018236,715 sharesFiscal year ended March 31, 2019
233,500 shares

The basis of the calculation of basic earnings per share is as follows:
Fiscal year ended March 31, 2018
Item(from April 1, 2017
to March 31, 2018)
Net income attributable to owners of parent
2,547(million yen)Amounts not attributable to common–shareholders (million yen)
Net income attributable to owners of parent
2,547
available to common shares (million yen)
Average number of shares during the period
33,629,260(shares)3.

(Significant subsequent events)
Not applicable.

- 18 -

Fiscal year ended March 31, 2019(from April 1, 2018
to March 31, 2019)
2,262
–
2,262
33,631,565